scrap metal dealers act

Scrap Metal Dealers Act 2013 — has it actually worked?

The Scrap Metal Dealers Act 2013 affects scrap car businesses and everyday sellers differently, so this guide is split into two parts - read both, or jump straight to the section that's relevant to you.

When the Act became law in October 2013, its aims were straightforward: make it harder to fence stolen metal, and keep better records of what's being scrapped and by whom.

Over a decade on, there's a real track record to look at. Scrap metal theft - particularly of catalytic converters and cabling - has remained a persistent, high-profile crime problem in the UK despite the Act, though licensing and the cash ban have genuinely made it much harder for stolen material to be quietly sold on without a trace.

It's fair to say the Act raised the bar for legitimate traceability without eliminating the problem it was aimed at.

How the Act affects scrap car businesses

Made law in October 2013, the Scrap Metal Dealers Act 2013 means scrap metal businesses can no longer pay cash for scrap, must be licensed, and have to keep proper records for traceability.

Curious why the law came in at all? See our guide on why you can't scrap a car for cash.

Cash payments are banned - cheques and electronic payments only

The law prohibits cash as payment for scrap metal of any kind, including scrap cars - cheques or electronic payments have to be used instead, since both are traceable. It's still legal to pay cash for a damaged car being bought to repair and put back on the road.

Where it gets genuinely grey is the line between the two. If a buyer isn't actually selling on a reasonable proportion of repaired cars, and is instead using "repairable" as a loophole to keep paying cash for what are really scrap vehicles, that's exactly the kind of pattern the law is designed to catch.

Local authority licences

To comply with the Act, scrap metal businesses need a licence from the relevant local authority. A business with a fixed site - a scrap yard - only needs one licence per site, even if it collects from areas covered by different councils.

A mobile operator with no fixed site needs a separate licence for each area they work in, and licences must be displayed prominently on every collection vehicle and at every site.

Scotland isn't directly subject to the Act, but Scottish businesses aren't automatically exempt either - a mobile Scottish operator collecting from England or Wales still needs a licence for each area they collect from there. A Scottish business with a fixed site in Scotland doesn't need a site licence or English/Welsh area licences.

Trading without a licence can result in the police or local authority forcing a business to stop trading entirely.

Registration with Disclosure Scotland

Despite the name, this applies UK-wide, not just to Scottish businesses. Disclosure Scotland provides criminal records checks used to confirm that a scrap business's directors and managers are suitable to run one. Details are available directly from Disclosure Scotland.

Purchase and sale records must be kept for 3 years

Scrap metal businesses must keep detailed records of every purchase and sale for three years, available to police investigating vehicle or metal crime.

Purchase records need a description of the vehicle, its weight, any distinguishing marks, and its registration number, alongside the seller's identification, name, address, and full payment details. Sale records need slightly less: weight, description, and the buyer's name, address and transaction details.

If you sell to a licensed ATF, there's a genuine traceable record of the sale - useful if the DVLA, an insurer, or the police ever have questions about a vehicle you've scrapped.

Police and local authority powers to enter licensed sites

Police and local authority officials can enter a licensed site with sufficient notice - a deliberate measure aimed at cracking down on rogue traders operating outside the rules.

How the Act affects you if you're selling a scrap car

If you've sold a scrap car before this law came in, you might have been paid in cash with little way to trace the sale afterwards. That's changed completely. Here's what to expect now.

You'll need photo ID and a recent utility bill

Whoever hands the car and its documents over to the collection driver needs to bring photo ID and a utility bill less than three months old - a British driving licence or passport is the most commonly accepted ID, and the utility bill can be from any energy supplier (phone bills aren't accepted).

This has to be the seller's ID, not necessarily the registered keeper's, unless they're the same person.

Cash payments aren't an option

It's illegal for a reputable dealer to pay cash for an end-of-life vehicle - payment has to be by cheque or electronic transfer, which may mean a short wait for the payment to clear rather than money in hand on the day. (Cash remains legal for cars being bought to repair and resell as roadworthy vehicles, not scrapped.)

Worth budgeting for: some cashless payment systems charge a transaction fee, which can mean a few pounds less than the headline price. If you have the choice, a bank transfer or cheque typically avoids this entirely.

What else affects what your car is actually worth? See our guide to scrap car value.

It's easier to spot a reputable dealer

Licensed ATFs have to display their licence on collection vehicles and at their site, and are legally required to ask for your photo ID and utility bill.

If a buyer offers you cash, or doesn't ask for ID, that's a clear sign to take your car elsewhere - a dealer willing to break this particular law has little reason to follow any of the others.

Common questions about the Scrap Metal Dealers Act 2013

Can I still get cash for my scrap car?

No — cash payment for scrap metal, including scrap vehicles, has been illegal since the Act came into force in October 2013. Payment must be by cheque or electronic transfer.

What ID do I need to sell my car for scrap?

Photo ID (a driving licence or passport) and a utility bill less than three months old, in the name of whoever is physically handing the vehicle over - not necessarily the registered keeper, if that's a different person.

Does this law apply in Scotland?

Not directly — but Scottish mobile operators collecting from England or Wales still need a licence for each area they collect from there, and UK-wide Disclosure Scotland registration applies regardless of where a business is based.

What happens if a dealer offers me cash?

It means they're operating outside the law. A legitimate, licensed dealer cannot legally offer cash for a scrap vehicle - treat a cash offer as a warning sign, not a convenience.

Has the Act actually reduced scrap metal crime?

It's made stolen metal significantly harder to sell on without a trace, thanks to mandatory ID checks, the cash ban, and 3-year record retention. It hasn't eliminated metal theft - catalytic converter theft in particular has remained a persistent problem - but it's raised the bar considerably for legitimate traceability.

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